Wealth not trickling down: a coalition of community organisations, trade unions, protest groups and consumer associations are calling for a state-wide civic strike in Colombia's mineral-rich region of La Guajira. Home to the continent's largest open-pit coal mine, the social movements behind the call argue that mineral revenues have failed to trickle down. La Guajira's Cerrejón mine, which is co-owned by London-listed Xstrata, BHP Billiton and Anglo American, has exported 500 million tonnes of coal since 1976. During that period however, La Guajira has remained one of Colombia's poorest states. Two of three (67%) of those living in the north eastern state remain in poverty. "The mine has ended agriculture and industry, and removed the jobs these activities created", says Felipe Ustate Perez, president of Fecodemigua, a non-profit representing communities displaced by mining.

Wayúu lady, from Julujushimana, 39 kilometres north of Cerrejon’s mine: the region is currently suffering a major drought due to poor rains. Photograph: Oliver Balch

Weak government institutions: the mining industry points the finger at local authorities for sluggish development. "Cerrejón is the largest and most solid entity in La Guajira", says Juan Carlos Restrepo, the firm's vice president of public affairs and communications. The company currently represents around 60% of La Guajira's gross domestic product, he adds: "For better or worse, we are the company that people look at for their protests or to get their problems solved." Restrepo blames poor state governance for the region's on-going problems. The mine's critics agree that levels of state administration are poor, but argue that the kind of aggressive capitalist economics symbolised by the likes of Cerrejón lies behind the problem. "The neo-capitalist system has privatized all the public systems – water, electricity, gas – leaving the state with no resources to act", says Ustate Perez of Fecodemigua.

A revision to Colombia’s mining code, introduced in January 2012, means only 20% of mining royalties go automatically to municipalities in the mine area. Previously, the proportion was 60%. Photograph: Oliver Balch

Royalties redirected: exacerbating social tensions in La Guajira is a recent change in Colombia's mining law. Cerrejón claims to have paid more than $3.9bn in taxes and royalties between 2001 and 2011. While tax revenues have always gone to the central government, local municipalities used to collect 60% of mining royalties (a total of $336m in 2011, in the case of Cerrejón). Under new rules, local municipalities now only receive 20% of the royalty cheque. The rest they have to bid for from central pot. The mining ministry argues that the revised system will increase accountability in public spending, and improve project planning and delivery. President Juan Manuel Santos has an aggressive plan to use Colombia's resource wealth as a driver for national economic development. While the mining industry welcomes this, Cerrejón's Restrepo admits that the policy's legitimacy will rest on delivering tangible benefits at a local level as well. "In the national context, mining is under question – just as it is in the rest of the world", he says.

Children in the Wayúu village of Orroko, La Guajira: Cerrejón’s social investments include 10 university scholarships and 4 Fullbright scholarships to the US every year. Photograph: Oliver Balch

Community struggles: in the rural communities surrounding Cerrejón's operations, life remains tough. Around 67% of the La Guajira population live in poverty, with 37% classified as 'indigent'. Among the most marginalised are the region's indigenous Wayúu people. This group depends on animal husbandry and small-scale agriculture for their livelihood. Following a bad rainy season earlier this year, many Wayúu communities are experiencing severe water shortages. "Here we have so many needs, especially water. We have just one well, but it operates manually which takes a lot of strength and when it dries up we must rely on neighbouring villages", says Maria Valasquez, a 48 year-old Wayúu woman from Julujushimana, a village bordering Cerrejón's railway. The nearby village of Santa Ana has a solar-powered water pump, paid for by the company. "We want the same here", she says. "And we'd like the company to build us a road to the highway too."

“Everything that happens in La Guajira happens because of Cerrejón”: Juan Carlos Restrepo, vice president of public affairs and communications. Photograph: Oliver Balch

Corporate social investment: Cerrejón has invested $19m in social programmes over the last two years. Most of its community investment projects are orientated through four separate foundations, which are run at arms-length from the company. Their activities focus on what Cerrejón identifies as priority areas where it can have influence: water, economic progress, indigenous issues and institutional strengthening. The latter supports efforts by municipal authorities to pitch for development finance from the new central royalties' fund, among other activities. Restrepo admits that Cerrejón's social investment budget falls far short of what's needed to resolve La Guajira's development problems. As a result, the company targets the communities in its "sphere of influence" with interventions that are "as effective as possible". Even so, Cerrejón's corporate responsibility efforts remain a drop in the ocean: "Even though we spend a lot in the community, it will take one hundred or one thousand [times] this money and people to change the lives of these communities", Restrepo says.

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